Correlation Between Duzhe Publishing and Huafa Industrial
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By analyzing existing cross correlation between Duzhe Publishing Media and Huafa Industrial Co, you can compare the effects of market volatilities on Duzhe Publishing and Huafa Industrial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Duzhe Publishing with a short position of Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Huafa Industrial.
Diversification Opportunities for Duzhe Publishing and Huafa Industrial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duzhe and Huafa is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial and Duzhe Publishing is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Duzhe Publishing Media are associated (or correlated) with Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Huafa Industrial go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Huafa Industrial
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 1.37 times more return on investment than Huafa Industrial. However, Duzhe Publishing is 1.37 times more volatile than Huafa Industrial Co. It trades about 0.12 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about -0.08 per unit of risk. If you would invest 591.00 in Duzhe Publishing Media on September 1, 2024 and sell it today you would earn a total of 39.00 from holding Duzhe Publishing Media or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Huafa Industrial Co
Performance |
| Timeline |
| Duzhe Publishing Media |
| Huafa Industrial |
Duzhe Publishing and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Huafa Industrial
The main advantage of trading using opposite Duzhe Publishing and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Huafa Industrial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Duzhe Publishing vs. Cambricon Technologies Corp | Duzhe Publishing vs. Loongson Technology Corp | Duzhe Publishing vs. Shenzhen Fortune Trend | Duzhe Publishing vs. Chongqing Road Bridge |
| Huafa Industrial vs. BeiGene | Huafa Industrial vs. Kweichow Moutai Co | Huafa Industrial vs. Beijing Roborock Technology | Huafa Industrial vs. G bits Network Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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